The dollar is at 1.5 month high on the eve of publication of US macroeconomic data

17.07.2015

On Friday, the dollar is stable at six weeks high against the basket of major currencies, as growing expectations for a rate hike in the US at the end of the year continue to support the dollar, while the markets are waiting for the publication of a number of macroeconomic data in the US later today.

The dollar got support after the speech of head of the Federal Reserve, Janet Yellen, to the US Congress, retaining the assumption of investors that interest rates will still be raised later this year.

However, speaking before the Senate Banking Committee on Thursday, a day after a speech to the Committee on Financial Services of the House of Representatives, Yellen avoided again to specifying the exact dates when the Fed is likely to start raising interest rates.

The USD index, which shows the relationship against a basket of major currencies, was kept unchanged at 97.73, near a six-week high of Thursday at 97.92.

The EUR/USD rose 0.10% to 1.0887 after Eurozone ministers on Thursday agreed to grant Greece a bridge loan size 7 billion euro to keep the country's economy afloat until the final approval of the financial help program.

On Friday, the loan is expected to be approved by all EU member states.

On Thursday, ECB President, Mario Draghi, said that there were several positive events that allow increasing the emergency bailout, and now Greece will be able to make payments and to repay its debts to the International Monetary Fund.

The pound was also up, the pair GBP/USD rose 0.10% to 1.5626.

The demand for the pound sterling got support after at the beginning of the week, the Bank of England Governor, Mark Carney, said that the time for a rate hike is coming. He also confirmed that the rate increase will be gradual.

Dollar is steady against the yen and the Swiss franc, with USD/JPY being traded at three-week highs of 124.10 and the pair USD/CHF remaining at 0.9578.

The Australian dollar showed a decline; AUD/USD fell 0.19% to 0.7391, while the pair NZD/USD rose 0.39% to 0.6537, rebounding from Thursday's six-year low of 0.6498.

Meanwhile, the pair USD/CAD rose 0.11% to 1.2972.

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